Tech Rally Powers Rise In China and Hong Kong Indexes, Inflation Reports Support Need for Additional Stimulus

Stock market indexes in China and Hong Kong extended gains of the previous week, and investors reviewed the latest inflation reports. 

The Hang Seng index advanced 1.5%, and the CSI 300 index increased up to 0.3% following the continued surge in tech stocks in Hong Kong.

Market gains in China were muted after the U.S. threatened to impose an additional 25% tariff on steel and aluminum products, which could disrupt trade with Asian suppliers. 

On the economic front, investors reviewed the latest updates on inflation amid louder calls for clarity on the previously announced fiscal stimulus.

China's consumer price inflation accelerated to 0.5% in January from  0.1% in December. The National Bureau of Statistics reported on Sunday.

Consumer inflation rose to the highest level since August, driven by the seasonal effects of the Lunar New Year. 

Producer price inflation in January decreased for the 28th consecutive month, amid persistent demand weakness, according to a separate report by the statistical agency released on Sunday. 

Producer price inflation decreased 2.8%, matching the rate in the previous month, and remained at the softest pace since August, as policymakers announced a raft of stimulus measures. 

China Indexes and Stocks 

The Hang Seng index increased 1.6% to 21,468.93, and the mainland-focused CSI 300 index advanced 0.2% to 3,901.06. 

Technology stocks advanced in Monday's trading in the hopes that the affordable advances in artificial intelligence may provide a boost to earnings growth. 

Alibaba Group advanced 5.5% to HK $105.50, JD.com Inc increased 2.8% to HK $161.50, Meituan gained 5.6% to $162.70, and Kuaishou Technology advanced 2.9% to HK $47.65.

India Movers: Movers: 3M India, Delhivery, Edelweiss Financial, Fortis, LIC, Mazagon Dock, Oil India, Ola Electric

Stock market indexes in Mumbai dropped, and the rupee drifted to a new record low after threats of U.S. tariffs weighed.

The Sensex index decreased by 0.7% to 77,330.94, and the Nifty index declined by 0.6% to 23,389.30.

On the Mumbai stock exchange, 172 stocks traded at their 52-week highs, and 264 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record low and traded at 87.90 against the U.S. dollar.

Oil India Ltd. decreased 3.7% to ₹409.35, and the crude oil and natural gas company reported a 44% plunge in quarterly profit from a year ago.

Consolidated revenue decreased to ₹9,391.2 crore from ₹11,493.9 crore, after-tax profit declined to ₹1,457.2 crore from ₹2,607.6 crore, and diluted earnings per share fell to ₹8.23 from ₹14.43 a year ago.

3M India Ltd. plunged 1.8% to ₹27,650 after the science and technology company reported a slight increase in revenue and a 16% decline in profit in the December quarter.

Consolidated revenue increased to ₹1,106.8 crore from ₹1,022.2 crore, net income fell to ₹113.7 crore from ₹135.2 crore, and diluted earnings per share decreased to ₹100.99 from ₹120.05 a year ago.

Ola Electric Mobility Ltd. fell 3.1% to ₹67.86 after the electric vehicle maker reported December quarter results.

Consolidated revenue decreased to ₹1,172 crore from ₹1,371 crore, net loss expanded to ₹564 crore from ₹376 crore, and diluted losses per share stretched to ₹1.28 from ₹1.02 a year ago.

Mazagon Dock Shipbuilders Ltd. increased 0.2% to ₹2,235.15 after the naval vessel builder reported a 30% surge in profit from a year ago in the December quarter revenue.

Consolidated revenue increased to ₹3,430.1 crore from ₹2,631.1 crore, net income advanced to ₹807.2 crore from ₹626.8 crore, and diluted earnings per share rose to ₹20.01 from ₹15.54 a year ago.

Fortis Healthcare Ltd. declined 1.1% to ₹642.65 despite the healthcare services provider reporting an 89% jump in its earnings in the December quarter.

Consolidated revenue increased to ₹1,949.2 crore from ₹1,686.5 crore, after-tax profit rose to ₹254.3 crore from ₹134.3 crore, and diluted earnings per share jumped to ₹3.28 from ₹1.78 a year ago.

Delhivery Limited decreased 2.5% to ₹308.75 despite the logistics and supply chain company reporting a sharp increase in revenue and earnings. 

Consolidated revenue increased to ₹2,477 crore from ₹2,325.2 crore, net income jumped to ₹25 crore from ₹11.7 crore, and diluted earnings per share rose to 33 paise from 15 paise a year ago.

Life Insurance Corporation of India advanced 0.6% to ₹820.95 after the company reported a slight increase in net income and a 5% decline in revenue in the December quarter.

Consolidated revenue decreased to ₹2,02,930.7 crore from ₹2,13,159.4 crore, after-tax profit rose to ₹11,008.7 crore from ₹9,469 crore, and diluted earnings per share jumped to ₹17.40 from ₹14.97 a year ago.

Edelweiss Financial Services Ltd. fell 0.6% to ₹111.30, and the financial services provider reported an increase in net income in the December quarter. 

Consolidated revenue decreased to ₹1,996.6 crore from ₹2,414.6 crore, net income advanced to ₹155.18 crore from ₹152.2 crore, and diluted earnings per share rose to ₹1.68 from ₹1.39 a year ago.

India Movers: Movers: 3M India, Delhivery, Edelweiss Financial, Fortis, LIC, Mazagon Dock, Oil India, Ola Electric

Stock market indexes in Mumbai dropped, and the rupee drifted to a new record low after threats of U.S. tariffs weighed.

The Sensex index decreased by 0.7% to 77,330.94, and the Nifty index declined by 0.6% to 23,389.30.

On the Mumbai stock exchange, 172 stocks traded at their 52-week highs, and 264 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record low and traded at 87.90 against the U.S. dollar.

Oil India Ltd. decreased 3.7% to ₹409.35, and the crude oil and natural gas company reported a 44% plunge in quarterly profit from a year ago.

Consolidated revenue decreased to ₹9,391.2 crore from ₹11,493.9 crore, after-tax profit declined to ₹1,457.2 crore from ₹2,607.6 crore, and diluted earnings per share fell to ₹8.23 from ₹14.43 a year ago.

3M India Ltd. plunged 1.8% to ₹27,650 after the science and technology company reported a slight increase in revenue and a 16% decline in profit in the December quarter.

Consolidated revenue increased to ₹1,106.8 crore from ₹1,022.2 crore, net income fell to ₹113.7 crore from ₹135.2 crore, and diluted earnings per share decreased to ₹100.99 from ₹120.05 a year ago.

Ola Electric Mobility Ltd. fell 3.1% to ₹67.86 after the electric vehicle maker reported December quarter results.

Consolidated revenue decreased to ₹1,172 crore from ₹1,371 crore, net loss expanded to ₹564 crore from ₹376 crore, and diluted losses per share stretched to ₹1.28 from ₹1.02 a year ago.

Mazagon Dock Shipbuilders Ltd. increased 0.2% to ₹2,235.15 after the naval vessel builder reported a 30% surge in profit from a year ago in the December quarter revenue.

Consolidated revenue increased to ₹3,430.1 crore from ₹2,631.1 crore, net income advanced to ₹807.2 crore from ₹626.8 crore, and diluted earnings per share rose to ₹20.01 from ₹15.54 a year ago.

Fortis Healthcare Ltd. declined 1.1% to ₹642.65 despite the healthcare services provider reporting an 89% jump in its earnings in the December quarter.

Consolidated revenue increased to ₹1,949.2 crore from ₹1,686.5 crore, after-tax profit rose to ₹254.3 crore from ₹134.3 crore, and diluted earnings per share jumped to ₹3.28 from ₹1.78 a year ago.

Delhivery Limited decreased 2.5% to ₹308.75 despite the logistics and supply chain company reporting a sharp increase in revenue and earnings. 

Consolidated revenue increased to ₹2,477 crore from ₹2,325.2 crore, net income jumped to ₹25 crore from ₹11.7 crore, and diluted earnings per share rose to 33 paise from 15 paise a year ago.

Life Insurance Corporation of India advanced 0.6% to ₹820.95 after the company reported a slight increase in net income and a 5% decline in revenue in the December quarter.

Consolidated revenue decreased to ₹2,02,930.7 crore from ₹2,13,159.4 crore, after-tax profit rose to ₹11,008.7 crore from ₹9,469 crore, and diluted earnings per share jumped to ₹17.40 from ₹14.97 a year ago.

Edelweiss Financial Services Ltd. fell 0.6% to ₹111.30, and the financial services provider reported an increase in net income in the December quarter. 

Consolidated revenue decreased to ₹1,996.6 crore from ₹2,414.6 crore, net income advanced to ₹155.18 crore from ₹152.2 crore, and diluted earnings per share rose to ₹1.68 from ₹1.39 a year ago.

U.S. Job Growth Slowed by Solid In January, Wage Growth Supports Fed's Rate Case

Nonfarm payrolls increase slowed to 143,000 in January from the upwardly revised 307,000 in December. 

The jobless rate edged down 4.0%, and wages inched up 0.5% from the previous month and increased the annual growth to 4.1%, according to the latest data released by the Bureau of Labor Statistics.

The U.S. economy added an average of 166,000 jobs a month, totaling 1.99 million in 2024, slower than the average monthly increase of 225,000, totaling 2.7 million in 2022.

Despite the slowdown in job growth, policymakers are likely to focus on the wage increase, which is far higher and inconsistent with the Fed's target rate of 2%.

The change in total nonfarm payroll employment for November was revised up by 49,000 to 261,000, and for December was revised up by 51,000 to 307,000.

With these revisions, employment in November and December combined is 100,000 higher than previously reported.

U.S. Job Growth Slowed by Solid In January, Wage Growth Supports Fed's Rate Case

Nonfarm payrolls increase slowed to 143,000 in January from the upwardly revised 307,000 in December. 

The jobless rate edged down 4.0%, and wages inched up 0.5% from the previous month and increased the annual growth to 4.1%, according to the latest data released by the Bureau of Labor Statistics.

The U.S. economy added an average of 166,000 jobs a month, totaling 1.99 million in 2024, slower than the average monthly increase of 225,000, totaling 2.7 million in 2022.

Despite the slowdown in job growth, policymakers are likely to focus on the wage increase, which is far higher and inconsistent with the Fed's target rate of 2%.

The change in total nonfarm payroll employment for November was revised up by 49,000 to 261,000, and for December was revised up by 51,000 to 307,000.

With these revisions, employment in November and December combined is 100,000 higher than previously reported.

Amazon.com Inc. dropped 2.9% to $231.98 after the company posted fourth-quarter sales, and sales growth outlook disappointed some investors.

Net sales increased to $187.79 billion from $169.96 billion, net income surged to $20.0 billion from $10.6 billion, and earnings per diluted share rose to $1.86 from $1.00 a year ago.

For the first quarter of 2025, the company estimated net sales growth of 5% to 9% to a range of $151.0 billion to $155.5 billion.

Operating income is expected to be between $14.0 billion and $18.0 billion, compared to $15.3 billion in the first quarter last year.

Amazon said it plans to boost capital expenditures to $100 billion in 2025, compared to $83 billion last year, as it continues to make investments in artificial intelligence.

The company faces increased competition from rivals, including OpenAI and Google.

Verisign Inc. dropped 0.08% to $220 after the provider of internet infrastructure and domain name registry services reported a 3.9% sales growth in the fourth quarter, but profit declined.

Revenue jumped to $395.4 million from $380.4 million, net income declined to $191.5 million from $265.1 million, and earnings per diluted share fell to $2.0 from $2.60 a year ago.

Verisign ended the fourth quarter with 169.0 million .com and .net domain name registrations in the domain name base, a 2.1% decrease from a year ago.

In the fourth quarter, the company processed 9.5 million new domain name registrations for .com and .net, as compared to 9.0 million for the same period in 2023.

Verisign repurchased 6.6 million shares of its common stock for $1.21 billion during the full year of 2024.

As of December 31, there was $1.02 billion remaining for future share repurchases under the company’s program, which has no expiration date.

Expedia Inc. surged 10.6% to $190.80 after the travel technology company reported a 13% increase in gross bookings during the fourth quarter ending in December.

Revenue increased 10% to $3.18 billion from $2.89 billion, net income climbed 124% to $299 million from $132 million, and earnings per diluted share jumped 139% to $2.20 from 92 cents a year ago.

The company proposed a first quarter dividend of 40 cents per share, payable on March 27 to holders of record on March 6.

Expedia expects 2025 gross bookings and revenue growth of 4% to 6%.

Travel demand has remained steady in Asia Pacific, aided by the lifting of some visa restrictions in the region, as well as in Europe.

 

Hilton Worldwide Holdings Inc. gained 0.04% to $270.50 after the hotel operator reported fourth quarter and record full-year results.

Quarterly revenue increased to $642 million from $601 million, net income surged to $505 million from $150 million, and earnings per diluted share rose to $2.06 from 57 cents a year ago.

Hilton repurchased 3.1 million shares of its common stock during the fourth quarter, bringing the total capital return, including dividends, to $781 million for the quarter and $3.0 billion for the full year.

For the first quarter of 2025, the company expects a 2.5% to 3.5% growth in revenue per available room, compared to the same period last year.

Hilton also estimated net income of $373 million to $388 million and earnings per share between $1.52 and $1.58 in the first quarter.

For the year 2025, the company expects net unit growth of 6% to 7%.

The company projects a full-year capital return of approximately $3.3 billion.

Cognizant Technology Solutions Corp dropped 1.9% to $82.01 after the IT consulting and outsourcing company reported lower-than-expected profit in the fourth quarter ending in December.

Revenue increased to $5.08 billion from $4.76 billion, net income declined to $546 million from $558 million, and earnings per diluted share fell to $1.10 from $1.11 a year ago.

Order bookings in the fourth quarter increased 11% from a year ago.

The company’s health sciences segment surged 10.4% to $1.54 billion, products and resources was up 11.3% to $1.29 billion, financial services jumped 2.8% to $1.43 billion, and communications, media, and technology was up 0.4% to $811 million.

Sales in North America jumped 3.1%, while U.K. sales were down 5.1%.

For the current quarter, the company estimated revenue growth of 6.5% to 8% in the range of $5.0 billion to $5.1 billion in constant currency.

Full-year 2025 revenue is expected to increase by 3.5% to 6% from $20.3 billion to $20.8 billion, and earnings per share are expected to be between $4.90 and $5.06.

Cognizant repurchased 1.8 million shares for $140 million during the fourth quarter, and as of December 31, there was $1.2 billion remaining under its share repurchase authorization.

The company proposed a quarterly cash dividend increase of 3% to 31 cents per share, payable on February 26 to shareholders of record on February 18.

Toyota Motors Corp. gained 4.1% to $195.35 after the passenger car manufacturer posted improved sales for the nine-month period from April to December 2024, driven by higher demand for its hybrid electric vehicles.

Revenue in the period increased to ¥35.67 trillion from ¥34.02 trillion, and net income jumped to ¥4.1 trillion from ¥3.95 trillion a year ago.

Sales in Japan and North America decreased, but in Europe and Asia, they increased.

For the fiscal year ending on March 31, Toyota estimated revenues of ¥47 trillion, compared to its previous forecast of ¥46 trillion.

Net income is seen at ¥4.52 trillion, compared to the company’s previous forecast of ¥3.57 trillion.

Toyota estimated vehicle sales in 2025 to decline to 10.85 million from 11.09 million units last year.

The company proposed to repurchase up to 530 million shares for a maximum of ¥1.2 trillion from May 9, 2024 until April 30, 2025.

Yum! Brands Inc. gained 2.3% to $134.25 after the fast food chain reported rising Taco Bell, KFC, and Pizza Hut sales in the fourth quarter ending in December, but earnings declined.

Revenue surged 16% to $2.36 billion from $2.04 billion, net income fell 9% to $423 million from $463 million, and earnings per diluted share dropped 8% to $1.49 from $1.62 a year ago.

Same-store sales worldwide rose 1% in the fourth quarter ending in December, led by Taco Bell sales with a 5% increase, while Pizza Hut same-store sales declined 1%, and KFC remained flat.

The company swung to an operating profit of $2 million in the Habit Burger & Grill division, compared to a loss of $10 million a year ago.

Yum! The brand's board approved a 6% increase in the quarterly cash dividend to 71 cents from 67 cents per share, payable on March 7 to shareholders of record on February 21.

Costco Wholesale Corp. gained 2.1% to $1,042.9 after the wholesale retailer reported strong January 2025 sales.

Net sales increased 9.2% to $19.51 billion from $17.87 billion a year ago.

Comparable sales in January jumped 7.5%, and e-commerce sales climbed 13.6% from a year earlier.

Excluding the changes in gasoline prices and foreign exchange, comparable sales increased 9.8%, and e-commerce sales jumped 15.2% year-over-year.

U.S. Movers: Amazon.com, Expedia, Hilton, Verisign

Amazon.com Inc. dropped 2.9% to $231.98 after the company posted fourth-quarter sales, and sales growth outlook disappointed some investors.

Net sales increased to $187.79 billion from $169.96 billion, net income surged to $20.0 billion from $10.6 billion, and earnings per diluted share rose to $1.86 from $1.00 a year ago.

For the first quarter of 2025, the company estimated net sales growth of 5% to 9% to a range of $151.0 billion to $155.5 billion.

Operating income is expected to be between $14.0 billion and $18.0 billion, compared to $15.3 billion in the first quarter last year.

Amazon said it plans to boost capital expenditures to $100 billion in 2025, compared to $83 billion last year, as it continues to make investments in artificial intelligence.

The company faces increased competition from rivals, including OpenAI and Google.

Hilton Worldwide Holdings Inc. gained 0.04% to $270.50 after the hotel operator reported fourth quarter and record full-year results.

Quarterly revenue increased to $642 million from $601 million, net income surged to $505 million from $150 million, and earnings per diluted share rose to $2.06 from 57 cents a year ago.

Hilton repurchased 3.1 million shares of its common stock during the fourth quarter, bringing the total capital return, including dividends, to $781 million for the quarter and $3.0 billion for the full year.

For the first quarter of 2025, the company expects a 2.5% to 3.5% growth in revenue per available room, compared to the same period last year.

Hilton also estimated net income of $373 million to $388 million and earnings per share between $1.52 and $1.58 in the first quarter.

For the year 2025, the company expects net unit growth of 6% to 7%.

The company projects a full-year capital return of approximately $3.3 billion.

Expedia Inc. surged 10.6% to $190.80 after the travel technology company reported a 13% increase in gross bookings during the fourth quarter ending in December.

Revenue increased 10% to $3.18 billion from $2.89 billion, net income climbed 124% to $299 million from $132 million, and earnings per diluted share jumped 139% to $2.20 from 92 cents a year ago.

The company proposed a first quarter dividend of 40 cents per share, payable on March 27 to holders of record on March 6.

Expedia expects 2025 gross bookings and revenue growth of 4% to 6%.

Travel demand has remained steady in Asia Pacific, aided by the lifting of some visa restrictions in the region, as well as in Europe.

Verisign Inc. dropped 0.08% to $220 after the provider of internet infrastructure and domain name registry services reported a 3.9% sales growth in the fourth quarter, but profit declined.

Revenue jumped to $395.4 million from $380.4 million, net income declined to $191.5 million from $265.1 million, and earnings per diluted share fell to $2.0 from $2.60 a year ago.

Verisign ended the fourth quarter with 169.0 million .com and .net domain name registrations in the domain name base, a 2.1% decrease from a year ago.

In the fourth quarter, the company processed 9.5 million new domain name registrations for .com and .net, as compared to 9.0 million for the same period in 2023.

Verisign repurchased 6.6 million shares of its common stock for $1.21 billion during the full year of 2024.

As of December 31, there was $1.02 billion remaining for future share repurchases under the company’s program, which has no expiration date.

U.S. Movers: Amazon.com, Expedia, Hilton, Verisign

Amazon.com Inc. dropped 2.9% to $231.98 after the company posted fourth-quarter sales, and sales growth outlook disappointed some investors.

Net sales increased to $187.79 billion from $169.96 billion, net income surged to $20.0 billion from $10.6 billion, and earnings per diluted share rose to $1.86 from $1.00 a year ago.

For the first quarter of 2025, the company estimated net sales growth of 5% to 9% to a range of $151.0 billion to $155.5 billion.

Operating income is expected to be between $14.0 billion and $18.0 billion, compared to $15.3 billion in the first quarter last year.

Amazon said it plans to boost capital expenditures to $100 billion in 2025, compared to $83 billion last year, as it continues to make investments in artificial intelligence.

The company faces increased competition from rivals, including OpenAI and Google.

Hilton Worldwide Holdings Inc. gained 0.04% to $270.50 after the hotel operator reported fourth quarter and record full-year results.

Quarterly revenue increased to $642 million from $601 million, net income surged to $505 million from $150 million, and earnings per diluted share rose to $2.06 from 57 cents a year ago.

Hilton repurchased 3.1 million shares of its common stock during the fourth quarter, bringing the total capital return, including dividends, to $781 million for the quarter and $3.0 billion for the full year.

For the first quarter of 2025, the company expects a 2.5% to 3.5% growth in revenue per available room, compared to the same period last year.

Hilton also estimated net income of $373 million to $388 million and earnings per share between $1.52 and $1.58 in the first quarter.

For the year 2025, the company expects net unit growth of 6% to 7%.

The company projects a full-year capital return of approximately $3.3 billion.

Expedia Inc. surged 10.6% to $190.80 after the travel technology company reported a 13% increase in gross bookings during the fourth quarter ending in December.

Revenue increased 10% to $3.18 billion from $2.89 billion, net income climbed 124% to $299 million from $132 million, and earnings per diluted share jumped 139% to $2.20 from 92 cents a year ago.

The company proposed a first quarter dividend of 40 cents per share, payable on March 27 to holders of record on March 6.

Expedia expects 2025 gross bookings and revenue growth of 4% to 6%.

Travel demand has remained steady in Asia Pacific, aided by the lifting of some visa restrictions in the region, as well as in Europe.

Verisign Inc. dropped 0.08% to $220 after the provider of internet infrastructure and domain name registry services reported a 3.9% sales growth in the fourth quarter, but profit declined.

Revenue jumped to $395.4 million from $380.4 million, net income declined to $191.5 million from $265.1 million, and earnings per diluted share fell to $2.0 from $2.60 a year ago.

Verisign ended the fourth quarter with 169.0 million .com and .net domain name registrations in the domain name base, a 2.1% decrease from a year ago.

In the fourth quarter, the company processed 9.5 million new domain name registrations for .com and .net, as compared to 9.0 million for the same period in 2023.

Verisign repurchased 6.6 million shares of its common stock for $1.21 billion during the full year of 2024.

As of December 31, there was $1.02 billion remaining for future share repurchases under the company’s program, which has no expiration date.